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12. Barlow Company manufactures three products-A. B, and C. The selling price, variable costs, and contribution for one unit of each product follow: Product Selling

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12. Barlow Company manufactures three products-A. B, and C. The selling price, variable costs, and contribution for one unit of each product follow: Product Selling price S180 270 $ 240 Variable expenses: Direct materials 24 80 32 Other variable expenses Total variable expenses 102 100 148 126 180 180 Contribution margin S54 S 90 S 60 Contribution margin ratio 30% 33.33% 25% The same raw material is used in all three products. Barlow Company has only 6,600 pounds of raw material on ha will not be able to obtain any more of it for several weeks due to a strike in its supplier's plant. Management is tryin decide which product(s) to concentrate on next week in filling its backlog of orders. The material costs $8 per poun A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium ove usual price. Assuming Barlow's estimated customer demand is 500 units per product line and that the company has 6,600 pounds of raw material in an optimal fashion, what is the highest price Barlow Company should be willing to an additional pound of materials? A. $17 B. S18 C. $22 D. $20 E. None of the above 12. Barlow Company manufactures three products-A.B, d C. The tl for one unit of each product follow Selling price Variable expenses: Direct materials S180 S 270 $ 240 24 80 3 Other variable expenses Total variable expenses 102 148 100 126 180 180 Contribution margin $54 S90 $ 60 Contribution margin ratio 30% 33.33% 25% The same raw material is used in all three products. Barlow Company has only 6,600 pounds of raw m will not be able to obtain any more of it for several weeks due to a strike in its supplier's plant Management is decide which product(s) to concentrate on next week in filling its backlog of orders. The matenial costs S3 per u A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial pnemium usual price. Assuming Barlow's estimated customer demand is 500 units per product line and thurt the compuny ha 6,600 pounds of raw material in an optimal fashion, what is the highest price Barlow Compary should be willingt an additional pound of materials? A. $17 B. $18 S22 C. D. $20 None of the above E

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